Not every commercial property sale needs to go public. In some cases, keeping the process private can work to your advantage.
Off-market sales, also known as pocket listings or private listings, allow owners to test buyer interest or complete a transaction discreetly without advertising to the wider market.
While this approach can offer greater control and efficiency, it also comes with potential drawbacks.
This guide explains the advantages and disadvantages of selling off-market, along with how to decide if it is the right commercial real estate selling strategy for your goals.
What Is an Off-Market Sale in Commercial Real Estate?
An off-market sale means selling a property without publicly listing it on platforms like LoopNet, CoStar, or the MLS.
Instead, the sale is marketed privately, often to a select group of potential buyers through personal contacts or a broker’s exclusive network.
Common reasons to sell off-market include:
- Avoiding tenant or employee concerns that may arise from a public listing
- Reducing or eliminating marketing costs and certain brokerage fees
- Testing the market without the pressure of public visibility
- Preventing speculation about a business or property’s performance
While off-market transactions are less common than public listings, they are a regular part of commercial real estate sales, especially in high-value or sensitive situations where discretion is key.
Pros of Off-Market Sales
Off-market transactions can be appealing for sellers who value privacy, efficiency, and control. Key benefits include:
- Privacy and Discretion
Keeping the sale private reduces the risk of unsettling tenants, employees, or competitors. Discussions remain limited to serious prospects, allowing you to move forward without unnecessary disruption.
- Faster Deal Cycle
Without public marketing, staging, and multiple open showings, the process can move more quickly. Investors in a broker’s private network are often ready to act, shortening the time from introduction to closing.
- Lower Transaction Costs
Private sales can reduce or eliminate certain marketing expenses and listing-related fees, which may lower overall costs.
- More Control
You decide which buyers see the property and when. This can minimize unqualified offers and allow for more focused negotiations with trusted prospects.
Cons of Off-Market Sales
While the privacy of off-market selling can be valuable, the approach may also limit opportunities to attract the highest possible offer. Potential drawbacks include:
- Limited Exposure
With fewer eyes on the property, there is a smaller chance of creating competitive bidding. This could mean missing out on a top-dollar sale.
- Potentially Lower Offers
Some buyers may see an off-market opportunity as a chance to offer below market value. Without broad market feedback, it is also harder to benchmark your property’s worth.
- Smaller Buyer Pool
Even a well-connected broker can only introduce a limited number of qualified buyers. If those prospects are not the right fit, the process may stall.
When Going Off-Market Might Make Strategic Sense
An off-market sale is not the best choice for every property, but it can be a smart strategy in situations such as:
- Testing the market before committing to a full public listing
- Selling a fully leased property where tenant confidence is a priority
- Having a pre-identified buyer or access to a broker’s targeted network
- Selling a niche property that may not benefit from mass marketing
- Prioritizing privacy over securing the absolute highest price
In the right context, this approach can help you meet your goals with less public attention.
How to Connect with Qualified Buyers Without Listing Publicly
Off-market selling works best when you partner with a broker who can discreetly promote your property to a vetted buyer pool.
At DeLille | Field, we offer:
- Access to an exclusive network of institutional and private investors
- Targeted outreach to qualified prospects
- Comparative market analysis to set a competitive asking price
- Full transaction management with complete confidentiality
Questions to ask your broker about off-market sales:
- How will you identify and reach qualified buyers?
- What is your experience with off-market sales in my property type?
- How will you determine a fair market price without a public listing?
- How do you maintain confidentiality while ensuring strong offers?
Legal and Financial Considerations to Keep in Mind
An off-market sale is still a formal transaction that requires the same diligence as a public listing. Important steps include:
- Proper Documentation: Ensure contracts, disclosures, and inspection reports are complete.
- Fair Market Pricing: Work with a broker or appraiser to prevent undervaluing the property.
- Brokerage Agreements: Clearly outline exclusivity, commissions, and outreach limits.
- Tax Planning: Consult with a tax professional to address capital gains or 1031 exchange opportunities.
- Confidentiality Agreements: Use NDAs or other legal tools when necessary to protect details.
A well-structured off-market sale follows the same professional standards as a public transaction.
How to Decide Between Off-Market and Public Listing
If privacy, speed, and targeted outreach are your top priorities, an off-market sale may align with your goals.
If your objective is to maximize exposure and invite competitive bidding, a public listing might be the better route.
A knowledgeable broker can guide you toward the best-selling strategy for your property and market conditions.
Final Thoughts
Selling off-market can be the right choice for owners who value privacy, efficiency, and control, particularly if a trusted buyer is already in reach.
However, if your top priority is securing the highest possible price, a public listing may offer more opportunities.
At DeLille | Field, we help property owners evaluate both options and choose the approach that best fits their goals, market conditions, and asset type.
Whether you are ready to sell or simply exploring possibilities, our team can guide you through the process with clarity and discretion. Contact us today to schedule a confidential consultation.
